Small Business Minister gives franchising a good rating
Dr Craig Emerson, Federal Minister for Small Business, has given the franchising industry his resounding support at the National Franchise Convention in Sydney today.
As keynote speaker Dr Emerson told the assembled delegates "I give eight and a half out of 10 for the franchising model in Australia. It is a great vehicle for sharing risks and returns."
In light of ongoing inquiries into the franchising industry, he said "I don't see it as the role of Government to step in to commercial disagreements and legislate".
But he commented that he didn't consider the recommendations from the recent inquiry in Western Australia to be a threat to franchise business.
What he did highlight was the need for improvements in proper education of franchisees and the flow of information between franchisee and franchisor.
However O'Brien warned the industry not to take the easy path but to ride the economic storms and emerge stronger for the challenge.
In tough economic times he also warned franchisors to watch for signs of suppliers suffering financial difficulties.
The latest figures from the 2008 Franchising Australia Survey, conducted by Griffith University, reveals the industry has 1100 franchisors accounting for a $130 billion turnover. The number of franchisors has increased by 14.6 per cent since 2006.